Boost Benefits with PA’s New Employer Tax Credit for 529 Contributions

In a competitive hiring market, meaningful benefits help set your company apart and keep good people. Pennsylvania's Employer Tax Credit for 529 Contributions gives businesses a way to support employees' education savings while receiving a 25% state tax credit in return.

What Is the PA 529 Employer Tax Credit?

The program encourages Pennsylvania employers to contribute to their employees' PA 529 College and Career Savings Accounts. Employers can contribute up to $500 per employee each year and claim a tax credit equal to 25% of their total contributions.

How Does It Work?

For example, if an employer contributes $500 to the PA 529 accounts of 10 employees in a tax year, total contributions are $5,000. The employer would qualify for a $1,250 tax credit (25% of $5,000).

Why Offer a 529 Contribution Benefit?

Helping employees save for education does more than provide financial support. It strengthens your overall benefits package and shows employees you are invested in their families' futures.

• Attract top talent: Give job seekers another reason to choose you.
• Enhance employee benefits: Add a perk that complements retirement and healthcare offerings.
• Improve retention and satisfaction: Reduce financial stress for employees and their families.
• Support workforce development: Help employees and their dependents save for college, apprenticeships and career training.

Getting Started

Employers can set up PA 529 contributions as a workplace benefit through a simple process. To learn more about participation, eligibility and claiming the credit, contact the PA 529 program:

• Phone: 800-440-4000
• Email: pa529@patreasury.gov
• Website: www.pa529.com/employers

How We Can Help

Our tax team can help you weigh this credit alongside your other benefits and state tax planning, and make sure it is claimed correctly on your return.

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